Such a permission by Saudi Arabia would reduce the air travel time from New Delhi to Tel Aviv by Air India from about eight hours to five and a half hours, Netanyahu said. Israel's tourism ministry has announced a one-time grant of 750,000 euros to Air India for flight operations.
In an earlier report, Israeli newspaper Haaretz said a direct Air India flight through Saudi airspace will not only be a sign of warming relations between the Middle Eastern nations, but also of Indian Prime Minister Narendra Modi's "growing interests and influence" in the region.
So far Saudi Arabia has not allowed planes from any country to fly over it and go to Israel.
Saudi Arabia has reportedly allowed Air India to fly over its airspace for its new routes to Tel Aviv, Israel.
Israeli Prime Minister Benjamin Netanyahu on Monday claimed that Saudi Arabia had approved flights by Air India, the national airline in India, to cross over Saudi airspace, but were shifty denied by Air India officials.
"We have applied for the route with (India's) directorate general of civil aviation", a spokesman told AFP.
Meanwhile in New Delhi, an Air India spokesperson reacting to Prime Minister Netanyahu's statement said, "We are yet to receive any communication from the Indian regulator".
Currently, Saudi Arabia does not recognize Israel and has banned any flights to the country from using its airspace for more than 70 years.
Air India has not published when it would begin its flights to Tel Aviv, with media speculating they are due to start later in March.
Israeli prominent airlines El Al now operates an India service that takes a detour over the Red Sea to avoid flying over Saudi Arabia and Iran.